The Complete Guide to Buying a Cafe
Practical Advice to Get it Right

Is the broker going to help me?

Answer

Do you pay the broker? No! The vendor pays the broker and he acts in the vendors best interests. He does not care about you - he only wants to sell a cafe.

Search result for 'The broker' in The Complete Guide to Buying a Cafe

49.
"... be a tricky and awkward process. It is best in this scenario to employ the services of a buying agent to handle the negotiations. - Contacting The broker - It is definitely worth your while to have a look in the newspaper or online and identify who the major business brokers are in your ..."
"...The brokerf a business broker is to represent the vendor, so it still falls to you to ask as many relevant questions as you need, and to assess how well the answers satisfy you. Many café buyers make the mistake of believing the information that The broker provides is accurate, and ..."

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"...The brokernquire about cafés that you are interested in, you will be asked by The broker or seller to complete a non- disclosure agreement. This is a legal document that basically is designed to make sure that you don’t go and tell others about the details of the business (if you ..."
2.
"... it’s not as if you have any choice. After you have sent the NDA back, The broker will send you what they call a business summary. This is a 1 or 2 page document that gives you a high level overview of the café. It will usually contain details such as: • Description of the café • ..."
53.
"... based solely on the information provided in the business summary. There are several reasons for this: • It is written by The broker who is pitching the business in its best light • Figures are often altered to represent future scenarios • Assumptions are made about staffing • ..."
63.
"... - Financials - When you ask The broker to see the accounts, he will point you towards the Business Summary. It is better that you ask to see the “certified accounts”, since these represent a much more accurate view of the business financials. Try to obtain as many sets of ..."
"...The brokerritical figure in all of this is net profit. The way to think of the financials is quite simple: turnover – costs = net profit. But remember that brokers will make assumptions to make a business look more attractive than it actually is. For example, you may find an assumption ..."
"...The brokerwill not be identical (as the roster will usually be for a “typical” week) but they should be very similar. If not, alarm bells should be ringing and you should be asking The broker to provide details of why there is a discrepancy. Any discrepancy is a cause for concern ..."

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"...The brokere broker will advise the seller on what the asking price should be. The simple rule is, the higher the profit, the higher the price. It’s a very inexact science and often some cafés buck the trend completely (such as franchised businesses which are initially very expensive to set up ..."

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Chapter 8: Meeting The Owner
"...The brokerave decided that you are interested in the café you should make an appointment to meet the owner(s). This is usually arranged by the business broker. The business broker may or may not attend. It is better to meet the owner of the café on their own if possible as ..."
11.
"... owner and to watch what is happening around the café. The second person may hear things differently to you. • Ask The broker why the owner is selling and ask the owner separately. • If you are making an “official” visit to see the café and to ask the owner questions, make this ..."
26.
"... make the business look more profitable than it actually is. Why are you selling the business? Check the response against The broker’s response. Try to drill down and obtain more information where they give a “general” response. How long have you owned the business? If the timeframe is ..."

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"...The broker requires council authorisation to trade as a café. This is called the “Permitted use”. The permitted use documentation will also include details of the opening hours approved by council. Ask your solicitor to obtain these documents either from The broker or from the local council. These documents are extremely ..."
"...The brokerg all that, the next step is to put your offer forward to the business broker directly. Just like with any sales situation The broker may try to put pressure on you and use “sales tactics” to get the best price for his vendor. Try not to let heart rule ..."
"...The broker you agree a price with The broker and the café is yours – or is it? The answer is, no, not yet. The café is only yours when you have signed the contract and paid the 10% deposit. Until that is completed there is no formal agreement and the ..."

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Is the broker going to help me?

Search result for 'The broker' in Glossary of The Complete Guide to Buying a Cafe

Business Summary
Asking Price
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""Craig's experience as a cafe consultant makes this book indispensable reading for anyone looking to buy a cafe - it's..."

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